Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy consumption rate (crude oil equivalent energy consumption/net sales) since its peak in fiscal 2007, although it increased slightly in 2016.
• Increased use of recycled raw materials exceeding the use of natural resources in 2016 (Japan: 42.3% in smelting and materials, 51.9% in other segments; Group-wide: 37.9%).
• Implemented environmental audits at 23 business locations in 2016, following ISO 14001 standards.
• Expansion of wastewater processing capacity at Hachinohe Smelting and expansion of waste gas processing capacity at Takehara Refinery and Kamioka Mining and Smelting in 2016.

Social Achievements

• Consistently reducing energy consumption in logistics since 2012.
• Provided environmental training to 3,441 people in 21 overseas production bases in 2016.
• Conducted various social contribution activities, including plant visits, internships, community clean-up activities, and disaster support.
• Held sports days for employees in India to increase motivation and improve communication.

Governance Achievements

• Established the Supreme Safety & Environmental Meeting to deliberate on safety and environmental matters.
• Established the Basic Policy on Environmental Conservation and formulated the Environmental Action Plan.
• Prepared the Compliance Guidebook related to the Antimonopoly Act in 2014 and implemented seminars on fair trade.
• Established a mechanism to examine whether activities meet stakeholder requests and expectations.

Climate Goals & Targets

Environmental Challenges

• Increased waste generation in 2016 due to increased production.
• Increased CO2 emissions from fuel combustion in 2016 (8.4% year-on-year increase) due to production expansion and changes in power generation mix.
• Managing suspended and closed mines to prevent pollution.
• Ensuring compliance with environmental laws and regulations across the entire Group.

Mitigation Strategies

• Constantly working to reduce waste through reuse and recycling efforts.
• Striving to reduce CO2 emissions through efficient use of electric power and coke.
• Taking various measures to prevent mine pollution (maintaining tailings dams, monitoring water quality, purifying water).
• Conducting regular environmental audits and providing environmental training.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair and impartial transactions
• CSR Procurement Policy (planned for 2018)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental preservation
• Human rights
• Responsible supply chain
• Work-life balance
• Diversity promotion
• Compliance
• Community investment

Environmental Achievements

• Initiatives to reduce energy use and GHG emissions
• Efforts to prevent global warming
• Environmental management to reduce environmental footprint
• Recycling initiatives in lead smelting (switching to recycled materials)
• Complete settlement of cadmium issues in the Jinzu River Basin

Social Achievements

• Established human rights policy
• CSR Caravan to educate employees on CSR and compliance
• Initiatives for work-life balance and diversity promotion
• Commitment to worksite safety
• Community contributions deemed necessary by communities and society

Governance Achievements

• Established CSR Office and CSR Committee chaired by the president
• Established subcommittees within the CSR Committee based on ISO26000 themes
• Improved corporate governance and compliance through the Legal Department
• Strengthened risk management in cooperation with the Human Rights Committee

Climate Goals & Targets

Environmental Challenges

• Need to further enhance CSR to reach the level of leading companies
• Need to adapt corporate capability to social changes
• Challenges related to global operations and exposure to damage
• Economic downturns impacting electronic materials and metal businesses

Mitigation Strategies

• Drastic cost-cutting and downsizing measures during economic crises
• Accelerated overseas expansion and diversification into downstream and high-value areas
• Organizational restructuring to focus on core businesses
• Establishment of CSR promotion system and committees

Supply Chain Management

Responsible Procurement

• Promoting responsible mineral sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO26000, Environmental Reporting Guidelines (Ministry of the Environment, 2012 version), G4 GRI Sustainability Reporting Guidelines

Sustainable Products & Innovation

• Mercury-free zinc powder
• Hydrogen-absorbing alloys
• MicroThin™ copper foil

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Human Rights
• Environment
• Labor Practices
• Fair Operating Practices
• Value Creation through Business
• Community Involvement and Development

Environmental Achievements

• Renewal of the hydraulic power plants of Kamioka Mining and Smelting Co., Ltd. is completed.
• Achieved target values set by the Group for GHG emission reduction.
• Progress in resources recycling in each business in recycling and smelting in the metals business.

Social Achievements

• Improvements in employee engagement checked quantitatively through the employee satisfaction survey and the employee turnover rate.
• Continuous operation of Huanzala Mine in Peru for almost half a century, contributing to the local community.
• Established a relationship of reliability and mutual cooperation with local people at Huanzala Mine, providing employment, infrastructure, healthcare, and agricultural support.

Governance Achievements

• Strengthened corporate governance system by checking its implementation of the Corporate Governance Code through dialogues with stakeholders.
• Full enforcement of compliance awareness at all levels, including overseas facilities.
• Established a Human Rights Policy in March 2017, supplementing Basic CSR Policies.

Climate Goals & Targets

Environmental Challenges

• Need to establish a cycle in which growth businesses and products are created, enter the market early and make a profit, and then link this to the next products and businesses.
• Need to transform from a non-ferrous metals smelter to a recycling smelter.
• Need to strengthen the quality assurance and develop underlying technologies to earn a good reputation for ACT amongst customers.

Mitigation Strategies

• Implementing Medium-Term Management Plan to establish a Market Co-creation business entity.
• Actively making investments to expand processing capacity of complex and refractory zinc ores, increase lead blast furnace processing, and strengthen capacity for collecting precious metals.
• Focusing on quality improvement, development of new products, and leveraging global development and sales promotion structure to meet customer requirements.

Supply Chain Management

Responsible Procurement

• CSR procurement efforts expanded across the supply chain in cooperation with business partners.
• Agreement on the Prohibition of Commercial Bribery with suppliers in China.
• Conflict Minerals Policy established in July 2017.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, ISO 26000, UN SDGs

Certifications: OHSAS 18001 (at major manufacturing sites in Japan), Conflict Free Smelter (CFS) for tantalum (Engineered Powders Division)

Sustainable Products & Innovation

• Products contributing to sustainable mobility (Mitsui Kinzoku ACT Corporation)

Awards & Recognition

• Supplier Quality Excellence Award, Quality Partnership Award, Grade A Supplier Award (Mitsui Kinzoku ACT Corporation)

Environmental Metrics

ESG Focus Areas

• Environmental preservation
• Social sustainability
• Corporate governance
• Human rights
• Responsible supply chain

Environmental Achievements

• Reduced CO2 emissions by 1.7% year on year in FY2017
• Increased the proportion of recycled raw materials used in smelting to 49.1% in FY2017
• Implemented new water treatment methods and reduced water usage

Social Achievements

• Launched a stress check program for employees
• Improved workplace safety, reducing the number of accidents
• Increased employee training hours

Governance Achievements

• Established a new corporate governance system
• Strengthened compliance measures
• Improved transparency and fairness in decision-making

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Maintaining high levels of workplace safety
• Ensuring compliance with environmental regulations

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented new safety measures and training programs
• Strengthened compliance systems and reporting mechanisms

Supply Chain Management

Responsible Procurement

• Collaboration with suppliers to reduce supply chain risks

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000

Certifications: OHSAS 18001, ISO 14001, ISO 9001, IATF 16949

Sustainable Products & Innovation

• Mercury-free zinc powder for batteries
• Hydrogen-absorbing alloys for hybrid vehicles
• MicroThin™ electrodeposited copper foil

Environmental Metrics

ESG Focus Areas

• GHG emissions
• Energy management
• Water management
• Waste and hazardous materials
• Impacts on biodiversity
• Health and safety
• Human rights
• Fair business practices
• Corporate governance
• Human capital
• Diversity
• Health management
• Human resources development
• Intellectual capital
• Intellectual property
• Quality assurance
• Social and relationship capital
• Community engagement

Environmental Achievements

• 92% critical supplier SAQ implementation rate
• Conducted as planned -Started in the metal business -Set up Climate action team
• Considered hydroelectric and solar power, and decided on one hydroelectric project

Social Achievements

• Conducted human rights DD at 6 affiliates (3 in Japan and 3 overseas)
• Improved the questionnaire based on the results of human rights DD and updates of the RBA Code of Conduct
• Conducted as planned -Sites in Japan and overseas -Sites in Japan. Overseas sites in FY21 -Discussed management targets
• Conducted as planned -Discussed management targets
• Confirmed the operation status of the lockout system at each site by the safety and environment audit
• Evaluated the potential for serious disasters based on disaster information and shared statistical data with each business unit
• Shared information on repeated accidents and discussed countermeasures
• Discussed detailed regulations
• Conducted some trainings

Governance Achievements

• Enhance corporate governance -Make changes to Systems for Ensuring Appropriate Business Operations -Add outside auditors to the Compensation Committee and the Nomination Review Committee -Evaluate the effectiveness of the Board of Directors by an independent organization -Prepare for a risk survey (e.g. risk survey sheet)
• Compliance system -Review the whistle -blowing system (establish multiple lines to enhance responses to critical issues and cooperation with the Internal Audit Dept. and Corporate Auditors) -Compliance training for senior management and training by ranks (Web)
• ICT governance -Establish detailed regulations for ICT use and security -Appoint persons in charge of information management -Establish an information management system at the Engineered Materials Sector and the Business Creation Sector -Establish SOC (Japan) -Establish CSIRT and start its operation -Risk assessment of company -wide common infrastructure
• Establish a task force to review the personnel system
• Create a workplace where diverse human resources can continue to work -Enhance the recruitment seminars for women and international students -Initiate building a management system for expanding job range of female employees and check the initiatives -Introduce a special leave of absence system for spouse transfers, a comeback system, and a telework system
• Diverse and inclusive workplace -Establish a diversity promotion website and disseminate information on a regular basis -Formulate a systematic diversity training plan -Conduct Group -wide unconscious bias training -Integrate employees’ health data management and utilize it -Use stress checks to improve the workplace environment to prevent mental health problems

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions
• Improving water management
• Reducing waste and hazardous materials
• Minimizing impacts on biodiversity
• Maintaining health and safety
• Ensuring human rights
• Maintaining fair business practices
• Enhancing corporate governance
• Promoting diversity and inclusion
• Improving employee health management
• Developing human resources
• Protecting intellectual property
• Ensuring quality assurance
• Engaging with the community

Mitigation Strategies

• Implementing various initiatives across environmental, social, and governance areas as detailed in the report.
• Setting targets and KPIs for improvement.
• Conducting regular assessments and audits.
• Implementing training programs and awareness campaigns.
• Engaging with stakeholders.

Supply Chain Management

Supplier Audits: 92% in 2021

Responsible Procurement

• SAQ (Supplier Assessment Questionnaire) implementation

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• G1
• G3
• G4
• G5
• G6
• G7
• G8
• G9
• G10
• G11
• G12
• G13
• G14
• G15
• G16
• G17

Environmental Metrics

ESG Focus Areas

• Environmental contribution products
• Carbon neutrality
• Recycling
• Renewable energy
• Decarbonized society

Environmental Achievements

• Increased production capacity of solid electrolyte for all-solid-state batteries
• Investment in eSep Inc. for carbon dioxide fuel synthesis
• Investment in Helical Fusion Co., Ltd. for nuclear fusion power generation

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased sales of copper foil due to inventory adjustment in the semiconductor supply chain
• Decline in sales of engineered powders due to production adjustments by major customers and sluggish demand
• Higher energy costs and inventory-related factors affecting the Metals Sector
• Decreased demand and delayed production recovery in the automotive market

Mitigation Strategies

• Expanding waste processing business leveraging existing assets (Zinc smelting)
• Increasing volume of processing recycled materials and improving furnace utilization (Lead smelting)
• New mine development project in Peru
• Demonstration project for using alternative fuels for smelting
• Expanding sales of door latches and catalysts
• Streamlining production with technology coefficient improvement and DX

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• MicroThin™ copper foil, solid electrolyte for all-solid-state batteries, HRDP® carrier for semiconductor packaging, copper powders for 3D printers, next-generation setters and 3D-printed ceramics

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Human Rights
• Supply Chain Management
• Resource Recycling
• Community Engagement

Environmental Achievements

• Introduced Internal Carbon Pricing (ICP) System in FY2023 to increase investment in CO2 emission reduction activities.
• Taiwan Copper Foil Co., Ltd. achieved a 1.6 GWh reduction at its plant by updating refrigeration and air conditioning equipment.
• GECOM Corporation used 63% hydroelectric power (20 percentage points increase from FY2021).
• Ageo Plant used 30% renewable energy.
• Revised medium-term and long-term CO2 emissions reduction targets for Scope 1 and 2 in March 2022.
• Started calculating Scope 3 emissions at all domestic sites since the second half of FY2022.
• Introduced purification treatment equipment at MKCI Sanand Plant to recycle treated water.

Social Achievements

• Established Diversity, Equity, and Inclusion Office in 2021 and Committee in 2022.
• Introduced ESG-linked compensation scheme for Directors in FY2023.
• Established HR Business Partner Office in April 2022 to align personnel management with management strategies.
• Revised personnel system in the previous year, adopting the job-based model.
• Completed human rights DD at 43 sites (75%) of the target 57 sites within and outside Japan by FY2022.
• Hachinohe Smelting Co., Ltd. conducted a scenario-based disaster drill.

Governance Achievements

• Reorganized Intellectual Property Department under the newly established Technology Sector in April 2023.
• Revised Fundamental Quality Policy in 2022.
• Implemented self-inspection to ensure conformity to quality assurance guidelines at all sites in Japan.
• Conducted quality compliance audits by internal third parties.
• Strengthened ICT governance system focusing on SOC, security risk assessments, and computerized ICT procedures control system.

Climate Goals & Targets

Environmental Challenges

• Rising raw materials prices and energy costs, violently fluctuating exchange rates.
• Decreased sales of electro-deposited copper foil and sluggish demand from smartphone manufacturers.
• Higher energy costs and inventory-related factors accompanying fluctuations in the non-ferrous metal market.
• Inventory adjustment throughout the supply chain for semiconductors.
• Fluctuations in market price of metals and exchange rates, rise in energy costs.
• Tightening of environmental regulations on fuel efficiency, exhaust gas, etc.
• Decrease in demand and delay in production recovery in the automotive market due to the spread of infection and semiconductor shortage.
• Increase in geopolitical risks in procurement of raw materials from overseas, production and sales.

Mitigation Strategies

• Accelerating growth through expanding business opportunities and developing schemes.
• Focusing on creating environmentally friendly products and promoting additional strategies to step up CO2 emissions reduction efforts.
• Establishing recycling networks, conducting studies for the development of new metal resources and renewable energy sources.
• Improving the resource efficiency of copper and precious metals, and increasing the recovery of by-products.
• Enhancing capabilities in all areas of technology, manufacturing and sales, and creating new products and businesses.
• Increasing capacity to explore business opportunities and promoting R&D to create new business sustainably.
• Implementing the integrated thinking-based management principle to increase financial value and social and environmental value.
• Securing a certain level of liquidity on hand for stable business operations.
• Active investments with a focus on business creation and engineered materials.

Supply Chain Management

Supplier Audits: 86 suppliers (94.5% response rate)

Responsible Procurement

• Mitsui Kinzoku Group procurement policy; RBA Code of Conduct; anti-bribery/corruption agreements with suppliers; CSR provisions and pledges to respect the Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Large-scale natural disasters

Transition Risks

• Carbon tax and energy cost changes
• Changes in raw material prices

Opportunities

• Customer trust acquisition by promoting low GHG emission production
• Expand sales to users in Japan and overseas
• Product development to reduce CO2 emissions
• Increase in sales of electronic components and related materials due to growth in demand for EVs
• Growth in recycled products and related markets due to increased recycling awareness

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), GRI Sustainability Reporting Standards, SASB standards

Certifications: ISO 14001, ISO 45001

Third-party Assurance: KPMG AZSA LLC

UN Sustainable Development Goals

• G1, G3, G4, G5, G6, G7, G8, G9, G10, G11, G12, G13, G14, G15, G16, G17

Initiatives contribute to these goals through various ESG programs and actions.

Sustainable Products & Innovation

• Environmental contribution products

Environmental Metrics

ESG Focus Areas

• Supply Chain Management
• Responsible Minerals Sourcing
• Environmental Management (Water, Waste, GHG Emissions)
• Human Rights
• Community Engagement

Environmental Achievements

• Initiatives to conserve biodiversity at Huanzala and Pallca Mines, including acid water treatment, environmental surveys, and employee training.
• Use of renewable energy (hydroelectric power) at Huanzala and Pallca Mines.
• Management of suspended and closed mines, including wastewater processing, tailings dam maintenance, and environmental audits.
• Waste rock removal and environmental restoration at Huanzala and Pallca Mines.

Social Achievements

• Community engagement and infrastructure development around Huanzala and Pallca Mines (e.g., agricultural tractor donation).
• Implementation of a grievance mechanism to address stakeholder concerns.
• Human rights training for security personnel at mining sites.
• 100% engagement rate for corrective actions with C-ranked suppliers (8% of all suppliers).

Governance Achievements

• Established a group-wide supply chain management system with a senior executive officer responsible for supply chain sustainability.
• Annual reporting to the Board of Directors on supply chain activities and risk management.
• Implementation of the Mitsui Kinzoku Group procurement policy, referencing the RBA Code of Conduct.
• Supplier due diligence and risk reduction initiatives, including SAQ surveys and engagement with high-risk suppliers.

Climate Goals & Targets

Environmental Challenges

• Risks in the supply chain related to human rights, labor, environment, and ethics.
• Risks associated with mining operations, including tailings dam management, water management, and community relations.
• Low scores in “Ethics” and “General” sections of the SAQ for some suppliers.

Mitigation Strategies

• Implementation of the Mitsui Kinzoku Group procurement policy and SAQ surveys to assess supplier performance.
• Engagement with C-ranked suppliers to identify and address risks.
• Development of drainage ditches and grass planting at Huanzala and Pallca Mines to regenerate vegetation.
• Regular monitoring and stability assessments of tailings dams.
• Addressing community concerns through discussions and collaboration with local stakeholders.

Supply Chain Management

Supplier Audits: SAQ surveys conducted for 73 suppliers in FY2023 (84.9% response rate).

Responsible Procurement

• Mitsui Kinzoku Group procurement policy, referencing the RBA Code of Conduct.
• Anti-bribery/corruption agreements with suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, UN Global Compact, UN Guiding Principles on Business and Human Rights, ICMM basic principles, SASB

Certifications: ISO 14001 (Huanzala Mine), RMAP Conformant (Tantalum smelting business)

Third-party Assurance: Independent auditing company (for responsible minerals sourcing)